Ahmedabad, May 14 (UNI) Hotel and Restaurant Associations of Western India (HRAWI) today requested the Gujarat government to address the concerns and demands of the industry in the larger interest of the state economy and its development.
Addressing mediapersons here, HRAWI vice president S P Jain today said the state should charge the luxury tax on actual tariff paid by guests instead of published room tariff as many times they had to effect special discounts to the guests.
He said in view of the fact that in most cases across Gujarat, room tariffs of luxury hotels are now hovering around Rs 3,000, the 5 percent tax rate slab may be changed as Rs 501 to Rs 3,000. This will instantly induce the budget travellers to visit the destinations in Gujarat, such as the pilgrimage centres and beach resorts.
The consolidation scheme, where the tax is chargeable on the basis of 50 per cent occupancy level, has not found favour and hence it is suggested that the State may levy a tax at 5 per cent on actual declared room tariff, with occupancy at 40 per cent, on uniform basis, with option to opt for consolidation or on actual charged, to hotels having tariff over Rs 3,001. With more and more hotels coming up with higher tariff in Gujarat, the state government will have a substantial revenue increase, he said.
With regard to VAT on Food and beverages turnover, the Association requested the government that at least 20 per cent of total purchase of raw material be permitted from out of state, as there are few authentic raw material ingredients of Thai, Malaysian, Hyderabadi, Goan and Continental cuisine, available only outside Gujarat.
Other items the association's concern to the government is to give five per cent cut on electricity duty from the 25 per cent, relaxation in prohibition policy, Infrastructure and tourism promotion.
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